NEW YORK - a free fall in commodity and an unexpected jump in claims unemployment put financial markets on edge Thursday, dragging the stock market lower.
Oil prices fell nearly $10, or 9%, to nearly US $100 per barrel for the first time since mid-March. Money lost 8% to settle at $34.41. metal already had his fall a day more than three decades on Tuesday and close to $ 16 off the coast of its high of $50 reached last week. And gold fell by 2.3% to $1,474.90 an ounce.
Products such as oil and cotton increased more than 25 percent over the past year. Some, such as money, remain nearly 100 per cent during this period last year, despite the decline of Thursday. Withdrawal of Thursday indicated that some speculators were locking in their gains and that of other investors protecting profits for reasons of Friday jobs reports may be worse than thought, say experts. Which might lead to a weaker consumer demand.
"Speculators are unwind their positions to make a profit", said Peter Fusaro, Chairman of Global Change Associates, a business consultant to energy in New York.
Energy companies fell, imitating the price of oil. Exxon Mobil, Chevron, and Schlumberger has lost more than 2%. The decline in oil prices was a hand for companies such as Delta Air Lines, which won 7 percent.
Stock indexes have fallen after the Ministry of labour, said that applications for the first time in unemployment benefits reached to 474,000 last week, the highest level in eight months. Forecasters could not see his entry. Economists had expected claims would fall to 410,000.
The Dow Jones industrial average lost 139.41 or 1.1%, to 12,584.17 points. The S & P 500 dropped a 12.22 or 0.9%, to 1,335.10. The Nasdaq composite dropped 13,51 or 0.5%, to 2,814.72.
Government bonds rose, pushing interest rates in the long term at their lowest levels this year. The yield on the note of 10 years of the Treasury Board sank to 3.16 percent.
Claims for unemployment benefits rose in three of the four previous weeks. The jump in claims, with the other signs of economic recovery loses force, have raised concerns about the monthly report of jobs in the Government in April will reveal when he came out Friday.
Economists provides that employers added 185,000 workers in April. The unemployment rate should remain unchanged at 8.8%.
Meanwhile, gas is nearly $4 per gallon and companies leading packaged goods have implemented price on every day purchases, leading some analysts worry that consumers will reduce spending.
Before Wednesday, rising revenues had led stocks up to these past few weeks. But same solid results reported that Thursday by several large companies did not concern about the economic recovery.
General Motors Co. has been among the companies reporting more than profits Thursday. GM said its revenues more than tripled on higher sales in the United States and China. Despite the results, GM fell by 3%.
Other companies that reported strong gains has increased. Whole Foods Market Inc. acquired 0.4% after its quarterly results topped Wall Street estimates. Estee Lauder Cos. gained 1.2% after it said earnings doubled on higher sales.
Despite the losses in the past two days, larger markets are on the rise - the S & P, for its part, is 15 per cent, not including dividends - the year since the "flash crash" has led many investors to flee the market.
Friday marks the first anniversary of the accident of "flash" when the Dow Jones index sank nearly 1,000 points in less than half an hour. Some stocks has lost a third of their value in four minutes.
The market has regained most of its losses by the end of the day, but the wild ride has left a mark. Fund managers say the "flash crash" investors every day, always suspicious after the financial crisis more and more reluctant to trust their savings in the stock market. They have started to cash from mutual funds that invest in shares and promoting instead of tensile bond funds.
A pair of economic reports down stocks lower Wednesday. Processor payroll ADP said businesses added fewer jobs in April that economists had expected. In a separate report, the Institute for supply management said its index of service sector has increased at a slower rate in 8 months in April.
Two stocks fell for all those who have increased on the stock exchange of New York Thursday. Consolidated volume came to $ 4.8 billion shares.
No comments:
Post a Comment